Go 4th leaders express frustration during Longview budget hearing
Friday, November 21, 2008 6:38 PM PST
By Amy M.E. Fischer
Fourth of July festival organizers pleaded for funding, citizens questioned spending priorities and Longview City Council members argued over tax and fee hikes during Thursday’s city budget hearing.
“What a difference two years can make,” City Finance Director Kurt Sacha told the council, echoing the words he said in 2006 during a period of unprecedented growth.
Two years ago, the council was debating how to spend a budget surplus brought on by a construction boom and surge in sales tax revenues. Now, the city is laying off employees, cutting services and struggling to raise revenues to balance its $212.7 million budget for 2009-2010.
The budget is $57.5 million higher than it was for 2007-2008, a 37 percent increase driven by capital projects including a new water treatment plant and rerouting West Longview’s sewer system, Sacha said.
To pay for the utility construction projects, the city is dramatically hiking utility rates over the next several years. On top of that, the council has decided to raise taxes on utility bills from 7 percent to 9.5 percent for the next two years, promising the tax will revert to 7 percent on Jan. 1, 2011.
Thursday, Councilman Andy Busack repeated his objections to the utility tax hike. City Manager Bob Gregory replied that if the council doesn’t raise the tax, it will have to decide which city services to cut instead.
Councilman Dennis Weber pointed out that the council may be in that position anyway in six months. At what point, he asked, would the council entertain the notion of renegotiating union employees’ contracts and wage rates?
Gregory said that idea got a cool reception when city staff brought it up recently to the city’s labor groups. The unions recommended the city cut services and reduce staff levels rather than reopen their contracts, he said.
One citizen questioned the council’s spending priorities, asking why the city would cut jobs and services while planning several capital improvement projects, such as a $250,000 pedestrian and bicycle path in the Highlands between Oregon Way and 26th Avenue. The man also criticized the council’s allocation of $100,000 to begin renovating R.A. Long Park in the center of Longview’s historic Civic Center.
Gregory explained that capital projects are funded by real estate excise taxes. Those taxes go into a dedicated fund that can’t be used to pay for services such as the library, police and fire department. The city is expecting to bring in $250,000 a year in real estate excise tax revenue, he said. In addition, that fund has leftover money that wasn’t used the previous year, when there were a couple of large real estate transactions that padded the pot.
One cost-saving measure the council settled upon was to stop funding police overtime for outside events such as the annual Go 4th festival, the KLOG car cruise, YMCA teen nights and National Night Out. That method of saving roughly $30,000 has proven controversial.
The Go 4th Festival Association was shocked and upset to learn that it would have to come up with $10,000 to pay for security at its three-day event, which draws thousands of people from across the region to Lake Sacajawea for food, music, vendors and an elaborate fireworks show. Local charities are worried they’ll lose their biggest annual fundraising event if organizers are forced to cancel it.
To cover the unanticipated security cost, the City Council has welcomed the cash-strapped Go 4th association to apply for hotel/motel tax dollars, which are allocated to groups that promote tourism. The current available amount is $13,000.
With vendor contract deadlines already looming for next summer’s festival, the Go 4th association has said it needs more assurance than a promise to have its funding application strongly considered.
Thursday, Go 4th’s executive director, Arleen Hubble, reminded the council the association has never requested city funding for operations in 30 years. The cost of putting on the event has risen from $15,000 in 1989 to more than $100,000 today, the group has said.
“Without a commitment from you, Go 4th is dead,” Hubble said. “You will have the dubious reputation of being the council who were the cause of the discontinued annual celebration of our independence.”
Hubble also pointed out that next summer’s Go 4th festival will likely draw an even bigger crowd because the city of Vancouver has canceled its celebration due to funding shortages.
All the council could do was strongly hint that Go 4th would get top priority during consideration of hotel/motel tax dollar applications.
“We’ll do what we can to make sure that the festival happens,” Mayor Kurt Anagnostou said.
A second budget hearing will be held at the Dec. 12 council meeting, and the council is expected to formally adopt the budget the same night.
Related article:
Go 4th 2009 not a sure bet, organizers say (Nov. 8)
jensdad wrote on Nov 21, 2008 12:14 AM:
mom of four wrote on Nov 21, 2008 12:59 AM:
feistyone wrote on Nov 21, 2008 5:55 AM:
Overeducated wrote on Nov 21, 2008 7:48 AM:
And if you think the union employees make too much money, then compare their salaries to employees at Weyerhaeuser. "
lucky1 wrote on Nov 21, 2008 7:58 AM:
Mrs. Pellwerds wrote on Nov 21, 2008 7:59 AM:
Lance Johnson wrote on Nov 21, 2008 8:03 AM:
Regular Reader wrote on Nov 21, 2008 8:53 AM:
As always: Stay in school, don't do drugs, don't be a felon, and you can get those good jobs too! "
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